Yeah I read that as "if we had an embassy there I'd do the same thing as the UK", if here whole quote is what's shown above. My guess is that she knows we don't have one there.
In this world of "gotcha" politics I gotta say this isn't much of a "gotcha." Over lunch today I was talking about the Mavericks, but accidentally lamented that the Cowboys would have a hard time signing Tyson Chandler. I guess I could never be president, but I honestly do know the Mavericks and the Cowboys aren't the same team. I'll trust that Ms. Bachmann knows and knew we didn't have an embassy in Iran and I'll be she could generally place Libya on a topographic map of the world without political boundaries listed.
My favorite part of this story is that she said the correct Embassy 3 times before misspeaking. NBC casually left that out.
Obama said there were 57 states, and is married to a teleprompter. Who cares? And who cares about Michelle Bachman anyways, she's like 5th in the polls.